Chinyere Okoro finance&legalhub

31/03/2026

Who is a next-of-kin?

Typically, a next-of-kin is described as a person’s closest relative. This individual can either be a blood relation, like children, or someone with legal status, which happens through marriage or adoption.

Under the Nigerian laws, the term “next-of-kin” can be used in different senses. Firstly, it means nearest blood relative or, the person to be notified in case of any eventualities of life like an accident, emergency or death.

Such a person may be required to make medical decisions such as providing information or consent for a person who is incapacitated.

Next-of-Kin and inheritance

Basically, being a next of kin carries certain duties and potential advantages. One gets firsthand information about events, has access to personal matters that may not be shared with others and is given a chance to handle a plethora of personal and intimate responsibilities on behalf of that person.

However, being someone’s next of kin does not automatically guarantee the right to inherit their property. It largely depends on whether there’s a valid will naming you as a beneficiary.
If there’s no will, specific laws come into play to determine who inherits what based on the legal relationship with the deceased. So, while being a next of kin can lead to inheritance, it’s not a guaranteed outcome.

Being named as someone’s next of kin does not automatically mean the person will inherit their property.
If the person dies with a written will, then whatever is stated in the will must be followed strictly. The instructions in the will override anyone else’s interests, including that of a next of kin.

09/10/2025

The key changes in Nigeria’s new tax laws (the “Nigeria Tax Act / Tax Reform Acts, 2025”) and what you need to know.

These take effect January 1, 2026.

Major Highlights

1. Consolidation of Tax Laws
Several existing tax statutes (Companies Income Tax, Personal Income Tax, VAT Act, Capital Gains Tax, Petroleum Profits Tax, Stamp Duties, etc.) are being repealed and replaced with a unified, modern tax framework.

2. New Tax Authorities / Administration

The Nigeria Revenue Service (NRS) replaces the old Federal Inland Revenue Service (FIRS) as the main body for collecting federal taxes.

There is also stronger harmonization between federal and state tax administration; more central coordination and uniform rules.

An Office of the Tax Ombudsman is created to handle taxpayer complaints & disputes.

3. Personal Income Tax (PIT) & What It Means for Individuals

Exemption for low earners: Individuals earning ₦800,000 or less annually (after allowances etc.) are exempt from PIT.

Rent relief: There is a rent relief deduction (some limits apply).

Residency rules clarified: Clearer rules for who counts as a tax resident. Residency may be established by presence in Nigeria (183 days or more), family/economic ties, maintaining a permanent home, etc. Resident individuals now will be taxed on worldwide income, nonresidents only on Nigerian-source income.

Expanded taxable sources: Income from digital and virtual assets (crypto, NFTs etc.), prizes, grants, in-kind benefits etc. are expressly included.

4. Corporate Tax & Businesses

Small business exemption: Companies with gross turnover ≤ ₦100 million and fixed assets ≤ ₦250 million qualify for full exemption from Companies Income Tax, Capital Gains Tax, and the new Development Levy.

Development Levy: A new 4% levy on assessable profits of companies above the small business threshold, replacing several overlapping levies (tertiary education tax, IT levy, Police Trust Fund levy, etc.)

Minimum Effective Tax Rate (ETR): Large companies (turnover or group thresholds apply) must pay at least a 15% effective tax rate. If their tax liability is below that, they will need to top up.

5. Capital Gains Tax (CGT)

For companies: rate increased (aligned with CIT) from 10% to about 30%.

For individuals: CGT now taxed using the progressive income tax rates rather than a flat rate.

6. VAT & Consumption Taxes

VAT rate stays at 7.5% (for now) rather than being increased.

Certain essential goods and services are zero-rated or exempt: basic food, education, healthcare, public transport, etc.

Stronger rules for VAT input credits so businesses can offset VAT paid on goods and services — reducing cascading tax effects.

7. Penalties, Compliance & Enforcement

Hefty fines for non-filing, non-registration, or late registration. For example, failing to file can lead to a fine of ₦100,000 the first month, plus ₦50,000 per subsequent month.

Greater powers for tax authorities: increased digital surveillance, reporting obligations (e.g. banks reporting large transactions), stricter enforcement of tax compliance.

All taxable persons must have a Tax Identification Number (TIN / UTIN).

What This Means / Things to Watch Out For

Good news for many low-income earners & small businesses: The exemptions and reliefs mean many people and small enterprises will see reduced tax burden (or zero PIT / CIT).

But higher earners and multinationals will face new liabilities: broader tax base, new rules for digital income, higher CGT, minimum tax rules, etc.

Digital economy now taxed explicitly: If you earn through digital services, or virtual assets, you are more likely to be in scope.

More record-keeping and documentation required: Because of expanded taxable categories, stricter filing deadlines, reliefs requiring credible proof etc.

Monitoring of financial transactions: Banks must report large transactions; there will be more tracking of income flows.

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13/01/2025

The year of limitless living

22/08/2024

Capital Requirement to set up Microfinance Bank in Nigeria.

In Nigeria, the minimum capital requirement to establish a fintech microfinance bank (MFB) depends on the type of microfinance bank you intend to set up. According to the Central Bank of Nigeria (CBN), the capital requirements are as follows:

Unit Microfinance Bank:

A Unit MFB operates in one location (no branches) and serves a local community.
Minimum Capital Requirement: ₦200 million.
State Microfinance Bank:

A State MFB operates within a specific state and can open branches within that state.
Minimum Capital Requirement: ₦1 billion.
National Microfinance Bank:

A National MFB operates across the entire country and can open branches anywhere in Nigeria.
Minimum Capital Requirement: ₦5 billion.

Stay informed

20/08/2024

What is SCUML?

The acronym was derived from :Special Control Unit against Money Laundering. The Special Control Unit against Money Laundering was established in 2005 as a specialised Unit to monitor, supervise and regulate the activities of Designated Non-Financial Institutions in Nigeria.

Who are these Designated Non-financial Institutions?

👇👇👇👇👇

They include dealers in jewellery, cars and luxury goods, hotels, chartered/ professional accountants, audit firms, tax consultants, legal practitioners, supermarkets, casinos (betting pools) and hotels. Also included are Estate Surveyors and Valuers, precious stones and metals dealers and non-governmental organisations (NGOs) or such businesses as the Federal Ministry of Industry, Trade and Investment or appropriate regulatory authorities may from time to time designate.

Where can I register for SCUML?

Registration may be done online .The website is www.scuml.org or you can visit the EFCC office nearest to you to do so .

Ensure you are running a legal business.

This significant event occurred at the prestigious Auditorium of the NBA Secretariat in Abuja. The engagement underscores the importance of the collaboration between the NBA and the EFCC in addressing

14/05/2024

Commercial Papers

With more companies turning to commercial papers as less expensive financing means in Nigeria, there are some nuances surrounding commercial papers or CPs as they are often called you need to be aware of.

Just like treasury bills, commercial papers are short-term debt instruments. However, while treasury bills are issued by the government, commercial papers or ‘CPs’ are issued by private corporations, companies, and financial institutions to raise capital for short-term funding needs.

They are typically unsecured and are used to finance current obligations such as payroll, accounts payable, and inventories. In Nigeria, commercial papers usually have a maximum tenor of 270 days (nine months).

Here are six things you should know before investing in commercial papers:

Commercial papers just have a fixed interest rate which is set at the time of issuance.

They are not vulnerable to price or rate fluctuations. Similar to Treasury Bills, these instruments are usually issued at a discount to their face value and then repaid at the full face value when they reach maturity.

Commercial papers typically have a higher yield rate than FGN treasury bills

It is quite typical for commercial papers to offer higher interest rates than FGN treasury bills because of the risk profile of the issuers.

Federal government-issued T-bills are viewed as low-risk investments by investors because of the very low-risk profile of the Federal government.

It is almost certain that the Federal Government would not default on its obligations, however, this surety doesn’t exist for many private companies.

Always look out for the creditworthiness of the issuer
Always carry out due diligence on the company issuing the CP. Ensure to read the credit rating report of the issuer before investing in the commercial paper.

In Nigeria, Agusto&Co and Global Credit Rating Co (GCR Ratings) are the major credit rating agencies for corporate organizations.

Ensure to carry out a critical appraisal of the issuer’s creditworthiness. In line with this move, only buy the CP of companies with a history of profitability and a reputable, organized corporate structure.

Some experts would advise that in Nigeria, it is advisable to only invest in CPs with a minimum rating of A.

Commercial papers are subject to a withholding tax of 10%

On January 2, 2012, the Federal Government decided not to tax bonds and short-term Government Securities for 10 years.

The exemption ended on January 1, 2022, except for bonds issued by the Federal Government. Hence, earnings from commercial papers are subject to a withholding tax of 10%.

Always take note of the net returns after tax before investing in commercial papers.

The CP program should be registered and quoted on the FMDQ Exchange

FMDQ Exchange is a securities exchange majorly focused on the trading of debt securities in Nigeria. At the moment, the NGX is mostly focused on the trading of equities in Nigeria, while the FMDQ Group is focused on the trading of funds and bonds in the country.

While commercial papers can be listed on NGX and NASD OTC Securities Market, FMDQ has carved a niche around listings for CPs and other debt securities.

Hence, before you invest in a commercial paper, ensure that it is listed on FMDQ.

Ensure that the value of the issued commercial papers is a small proportion of the issuer’s total net asset or equity.

If it is, it suggests that the company is not relying too heavily on commercial papers as a source of financing.

Essentially, the value of these papers should be a modest fraction of the overall financial health or value of the company.

This approach helps to manage risk and ensure that the company’s financial stability is not overly dependent on commercial papers.

The information presented here is for general understanding and should not be considered personalized financial advice.

Individual circumstances may vary, and consulting with a financial professional is recommended to assess suitability and potential risks associated with investing in commercial papers.

25/01/2024

Introduction to the Four Types of Wealth Lesson

In the pursuit of a rich and fulfilling life, it's essential to understand that wealth extends beyond mere financial means.
True wealth encompasses a broader spectrum, including financial, social, time, and physical aspects.
Each of these types of wealth plays a crucial role in our overall well-being and satisfaction.

In this exploration, we delve into the four dimensions of wealth and how they interconnect to enrich our lives.

Financial Wealth: This is often the most recognized form of wealth. It involves having the financial resources and assets that provide security, freedom, and the ability to make choices. Financial wealth is not just about accumulating money; it's about managing these resources wisely to ensure long-term stability and growth.

Social Wealth: Human connections and relationships are at the heart of social wealth. This type of wealth is built through strong, supportive networks of family, friends, and colleagues. Social wealth is about the quality and depth of these relationships, providing a sense of belonging, support, and shared joy.

Time Wealth: One of the most precious forms of wealth, time wealth refers to having the freedom to choose how we spend our time. It's about achieving a balance between work, leisure, and personal pursuits. Time wealth allows us to focus on what's truly important and brings us fulfillment.

Physical Wealth: Often overlooked, physical wealth pertains to health and physical well-being. It's about nurturing and maintaining our bodies through exercise, proper nutrition, and rest. Physical wealth is fundamental, as it enables us to enjoy all other forms of wealth to their fullest.

& legalhub

23/01/2024

Keep a clean credit record for your own good.

It is usually commonplace for bank customers to abandon their account in one bank and move to another bank once the account shows a debit position whether the debit is due to bank charges or a result of insufficient funds in the customers account to take care of a cheque the customer issued to another.

In your own interest, go and clean off the debit balance and request for the account to be closed if you are sure you won't need the account in future.

Why do you need to do this?

Every account whether individual or corporate is tied to Bank verification Number.

The BVN is an identification code and your identity for all your financial transactions.

The five thousand naira debit balance over the years can run into millions of naira as interest is calculated on the debit position daily.

The debit position can deny you access to loans from your banks because a credit search through the CBN credit Bureau will immediately show that you are a bad debtor.

Furthermore, it can hurt your political image .

Oya, run now and go and pay off that debit balance you abandoned in Bank A .

& legalhub

22/01/2024

A lot of fuss was made a while ago when someone in a popular TV reality show didn't know the full meaning of the acronym " CAC".

The fuss was much because she was supposed to know.

Well , here is the full meaning and some of their duties👇👇👇

Corporate Affairs Commission (CAC)

It is a government agency responsible for various aspects related to the establishment, operation, and closure of businesses in Nigeria.

It handles the formation, incorporation, management, striking off, and winding up of companies, business names, and incorporated trustees.

It ensures that businesses comply with the provisions of the Companies and Allied Matters Act 2020 and other regulations set by the Commission.

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&legalhub

17/01/2024

I am Chinyere Okoro a seasoned professional with over two decades of expertise in the financial sector and a lawyer.
With my wealth of experience as a banker, I have seamlessly transitioned my skills to the legal arena, offering unparalleled insights as a Corporate Lawyer.
My unique blend of financial acumen and knowledge of the law guarantees a tailored solution for clients navigating the complex intersections of business and law.

Trust me to be your strategic partner in safeguarding your corporate interest with precision and finesse.